By: Kleinschmidt H.B. No. 3441
A BILL TO BE ENTITLED
AN ACT
relating to the validity of certain construction liens under the
Texas Residential Construction Commission Act
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 420.002, Property Code, is amended to
read as follows:
Sec. 420.002. REQUIRED CONTRACT PROVISIONS. (a) In a
contract for the construction of a new home or an improvement to an
existing home required to be registered under Section 426.003, the
contract is not enforceable against a homeowner unless the
contract:
(1) contains the builder's name and certificate of
registration number; and
(2) contains the notice required by Section 420.001.
(b) Notwithstanding Subsection (a), a builder's failure to
comply with that subsection does not invalidate a lien of an entity
that:
(1) provided third-party financing to a homeowner for
the construction of a new home or an improvement to an existing home
under a residential construction contract; or
(2) renewed and extended financing for a purpose
described by Subdivision (1).
SECTION 2. This Act takes effect September 1, 2009.